Foreign direct investment occurs when a company:
a. purchases foreign securities such as stocks and bonds.
b. establishes foreign operating units.
c. enters into a contractual agreement involving exchange of services and payments.
d. engages in international trade.
e. gives aid to a Third World country.
b
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Refer to Table 2-16. What is Estonia's opportunity cost of producing one cell phone?
A) 0.2 board feet of lumber B) 5 board feet of lumber C) 8 board feet of lumber D) 32 board feet of lumber
State chartered banks were supposed to be driven out of business by the National Currency Act of 1863 and the National Banking Act of 1864 by
A) imposing a tax on their issuance of state bank notes. B) prohibiting them from having interstate branches. C) prohibiting them from paying interest on demand deposits. D) regulating the amount of interest they could pay on savings accounts.
A perfectly competitive firm is currently producing an output level where price is $10.00, average variable cost is $6.00, average total cost is $10.00, and marginal cost is $8.00. In order to maximize profits, this firm should
A) increase the market price. B) shut down. C) decrease its output. D) increase its output. E) not change its output — this firm is at its profit-maximizing position.
The simple circular flow model shows that workers and capital owners offer their services to firms through the
What will be an ideal response?